A voluntary retirement scheme (VRS) is an option companies provide to employees to take an early retirement.
It helps employers to reduce their workforce while the employees can avail of retirement benefits.
The VRS option is available to employees of both public and private-sector enterprises.
Employees typically choose this option for new opportunities like career advancement or a career change.
The compensation is equivalent to three months' wage for each completed year of service based on the employee's last drawn salary.
Corporations can replace their ageing workforce with new talents without a large-scale employee retrenchment.
Employees aged 40 or older who have worked for 10 or more years in the organisation can apply for early retirement.